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DEFINITION

change management
u By Katie Terrell Hanna George Lawton Mary K. Pratt

c
What is change management?
o Change management is a systematic approach to dealing with the transition or transformation
of an organization's goals, processes and technologies. The purpose of change management is
i
to implement strategies for effecting and controlling change and helping people to adapt to
n change.

Change management activities range from individual projects to large programs, such as digital
transformation that introduces many new processes and applications. Change efforts often
involve management teams and other stakeholders. Department-level management and
employee buy-in is essential.

To be effective, a change management strategy must do the following:

Consider how a change will impact processes, systems and employees.

Include planning and testing the change, scheduling and implementing it as well as
documenting and evaluating its effects.

Provide documentation to maintain an audit trail if a rollback becomes necessary and ensure
compliance with internal and external controls, including regulatory compliance.

How does change management work?

To understand how change management works, it helps to apply its concepts and tools to
specific areas of business. Below are examples of how change management works for project
management, software development and IT infrastructure.

Change management for project management

Steps for creating a simple change management plan.
Change management plays an
important role in project management
w because each change request must be
evaluated for its impact on the project.
Project managers, or the senior
executives in charge of change
control, must examine how a change
in one area of a project could affect
other areas and what impact that
change could have on the project as a
whole. Project areas that change
control experts should pay particular
attention to include the following
concerns:

k Creating a simple change management plan involves

following seven best practices.

THIS ARTICLE IS PART OF

 The evolving CIO role: From IT operator to business strategist

Which also includes:

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Scope. A change request could affect the project scope.

Schedule. A change request could alter the project schedule.

Costs. Labor is typically the largest project expense and changes that increase time to
complete also raise project costs.

Quality. Change requests might affect the quality of the completed project. For example,
accelerating the project schedule can affect quality when work is rushed.

Human resources. A change request might entail bringing on additional or specialized labor.
Also, when the schedule changes, key resources might be moved to other assignments.

Communications. Change management is interactive. Approved change requests must be

communicated to the appropriate stakeholders at the right time.
 Risk. Change requests must be evaluated to consider risks they pose. Even minor changes
can have a domino effect on the project and introduce logistical, financial or security risks.

Procurement. Changes to the project can affect when, where and how materials and contract
labor are procured.

When an incremental change is approved, the project manager documents the change in one of
four standard change control systems to ensure all thoughts and insight have been captured
with the change request. Changes that aren't entered through a control system are labeled
defects. When a change request is declined, this is also documented and kept in the project
archives.

What is Change Management and How Does It Work?

Change management for software development

In software development project management, change management strategies and tools help
developers manage changes to code and its associated documentation as well as help chief
information officers and project managers keep projects on track. Agile software development
environments encourage changes made to satisfy requirements or adjust the user interface.
However, changes aren't addressed in the middle of an iteration. They're scheduled as stories or
features for future iterations.

Version control software tools assist with documentation and prevent more than one person
from making changes to code at the same time. Such tools can track changes and back out
changes when necessary.

Change management for IT infrastructure

Change management tools are also used to track changes made to an IT department's hardware
infrastructure. As with other types of change management, standardized methods and
procedures ensure every change made to the infrastructure is assessed, approved, documented,
implemented and reviewed in a systematic manner.

Changes made to hardware settings are also referred to as configuration management.

Technicians use CM tools to review the entire collection of related systems and verify the effects
a change in one system has on other systems.

Types of organizational change

Change management can be used to manage many types of organizational change. The three
most common types are the following:

Developmental change. Any organizational change that improves previously established

processes and procedures.

Transitional change. Change that moves an organization away from its current state to a
new state to solve a problem, such as implementing a merger and acquisition or automating
a task or process.

Transformational change. Change that radically and fundamentally alters the culture and
operation of an organization. The result of transformational change might not be known
ahead of time. For example, a company may pursue entirely different products or markets.

Popular models for managing change

The best models provide guiding principles and help managers align the scope of proposed
changes with available digital and nondigital tools. Popular models include the following:

ADKAR. Prosci founder Jeff Hiatt created the ADKAR model. It consists of five sequential
steps:

1. Awareness of the need for change.

2. Desire to participate and support the change.

3. Knowledge of how to change.

4. Ability to implement desired skills and behaviors.

5. Reinforcement to sustain the change.

Prosci 3-Phase Process. This expands on the ADKAR model and includes three phases:
preparing for change, managing change and reinforcing change. It provides a comprehensive
framework for managing change initiatives.

Bridges Transition Model. Change consultant William Bridges created a model that focuses
on how people adjust to change. The model has three stages: one for letting go, a second
stage of uncertainty and confusion and a third one of acceptance. This model is sometimes
 compared to the Kübler-Ross five stages of grief: denial, anger, bargaining, depression and
acceptance.

IT Infrastructure Library. The ITIL framework offers detailed guidance for managing change
in IT operations and infrastructure. Axelos, a joint venture between Capita and the U.K.
Cabinet Office, created it.

Kotter's 8-Steps for Leading Change. Harvard University professor John Kotter's model has
eight steps:

1. Create a sense of urgency.

2. Build a guiding coalition.

3. Form a strategic vision and initiatives.

4. Enlist a volunteer army.

5. Enable action by removing barriers.

6. Generate short-term wins.

7. Sustain acceleration.

8. Institute change.

Lewin's Change Management Model. Psychologist Kurt Lewin created a three-step

framework that is also referred to as Unfreeze, Change, Refreeze model.

McKinsey 7-S Framework. Business consultants Robert H. Waterman Jr. and Tom Peters
designed a model to look holistically at seven factors that affect change: shared values,
strategy, structure, systems, style, staff and skills.

Agile change management. This approach integrates agile methodologies into change
management to boost flexibility and responsiveness to changes during a project's lifecycle.

Nudge theory. Developed by Richard Thaler and Cass Sunstein, this theory suggests that
gentle nudges can influence behavior and decision-making. In the context of change
management, it is used to subtly guide people and organizations through changes.

What are the benefits of change management?

Taking a structured approach to change management helps organizations mitigate disruption,
reduce costs, reduce time to implementation, improve leadership skills, drive innovation and
improve morale. In addition, there are ways change management can add structure to IT and
operations:

Improved documentation of enterprise systems.

Greater alignment between suggested change and what gets implemented.

 Better starting point for automation initiatives.

Clearer understanding of why systems were made.

Ability to reverse-engineer changes made to existing business processes and infrastructure.

Better ability to identify what can be safely eliminated or updated.

Five basic steps involved in applying change management strategies.

k Putting a change management strategy in action involves these five basic steps.

What are the challenges of change management?

Companies developing a change management program from the ground up often face
challenges. Besides a thorough understanding of company culture, the change management
process requires an accurate accounting of the systems, applications and employees that
changes are likely to affect. Additional change management challenges include the following:

Resource management. Managing the physical, financial, human, informational and

intangible assets and resources that contribute to an organization's strategic plan becomes
increasingly difficult when implementing change.

Resistance. The executives and employees most affected by a change might not be
amenable to it, resulting in a backfire effect. In many cases, this happens because people
perceive that change will result in extra work. Transparency, training, planning and patience
can help quell resistance and improve overall morale. Additionally, care should be paid to
address and manage the emotional journey of employees during change.

Communication. Companies often fail to consistently communicate change initiatives or

include employees in the process. Change-related communications plans require an
adequate number of messages, the involvement of enough key stakeholders to get the
message out, and the use of multiple communication channels.

9 CIO
New technology. The application of new technologies can disrupt an employee's entire g
workflow. Companies can improve adoption of new technology by creating a network of early
learners who champion the new technology to colleagues.

Multiple points of view. In any change initiative, success criteria may differ for people based
on their roles in the organization and incentives. Managing the impact of these factors is
 challenging.

Scheduling issues. Deciding whether a change program will be long or short term and clearly
defining milestone deadlines is complicated. Some organizations believe shorter change
programs are most effective. Others believe a more gradual approach to change reduces
resistance and errors.

Importance of a change management plan

As a conceptual business framework for people, processes and the organization, change
management increases the success of critical projects and improves a company's ability to
adapt quickly. Business change is constant and inevitable. But when poorly managed, it can
cause organizational stress as well as unnecessary and costly rework.

By standardizing the consistency and efficiency of assigned work, successful change

management assures that the people affected by changes aren't overlooked. As changes to
work occur, change management helps employees understand their new roles and build a more
process-driven culture.

Change management also helps companies remain dynamic in the marketplace and encourages
future growth.

The CIO as Change Management Champion

Principles of change management

Three principles of organizational change management build on the three stages of change
management introduced by Kurt Lewin in his book Principles of Topological Psychology:

Unfreeze the current state. Change agents need to identify what precisely they want to
change. They must formulate a "why" that other participants are likely to buy into. In essence,
 they need to reverse-engineer the future state and translate this benefit to other possible
participants. Then they get people to participate in the new idea. This could include executive
sponsorship for a big change or co-workers for a departmental change.

Change the system. At this stage, change agents and any collaborators can put the change
into practice. The change agents must work with collaborators to communicate the idea and
bring other participants on board. It is important to pay attention to any pushback and find
areas of shared understanding to either help move the change forward or shift its
implementation in response to feedback. Tension might be high as everyone gets used to the
new system. It's important to be respectful of their feelings and ideas.

Refreeze. Eventually, people get used to the new system, or they revert to what was working
before. At this stage, it is important to declare that the change is over whether accepted or
rejected. Even if the change was rejected, declaring it over gives everyone a chance to relax.
It is also helpful at this stage to document what happened for future reference.

The impact of digital transformation on change management

Digital transformation has significantly accelerated change management processes in
organizations. As businesses increasingly adopt digital technologies, the pace at which changes
must be implemented has increased.

Digital transformation initiatives often involve the integration of new technologies, the
restructuring of processes and the adaptation of organizational cultures. This necessitates a
more responsive approach to change management to ensure that transformations are
implemented successfully and yield the desired outcomes.

Change management and digital transformation are intrinsically linked, with each driving the
success of the other. Effective change management is crucial for the successful implementation
of digital transformation initiatives. It ensures that the workforce adapts to new technologies
and processes, and that the organizational culture evolves to embrace digital advancements.

Integrating change management with digital transformation involves aligning the objectives of
both approaches to ensure a seamless transition. Change management strategies must be
designed with a clear understanding of an organization's digital goals, ensuring that change
initiatives support and enhance digital transformation efforts. This integration helps mitigate
resistance, enhance stakeholder engagement and ensure the digital transformation's benefits
are realized.

The integration of digital tools and platforms has enabled organizations to execute change
initiatives more swiftly and efficiently. For example, cloud computing facilitates faster
deployment of new applications and services, while collaboration tools enable better
communication and coordination among team members regardless of their physical location.
This digital enablement helps organizations respond faster to market changes, competitive
pressure and customer demands.

Role of data analytics and AI in change management

Data analytics and artificial intelligence (AI) play a pivotal role in enhancing the effectiveness of
change management. These technologies provide insights that can inform the planning,
execution, and evaluation of change initiatives. By analyzing data and using AI, organizations
can identify patterns, predict outcomes, and make informed decisions about where and how to
implement changes.

In the planning phase, these tools can identify areas that require change and prioritize change
initiatives based on their potential impact. During execution, AI can streamline processes by
automating routine tasks and freeing up human resources to focus on more complex aspects of
the change management process. AI also provides real-time feedback and analytics, enabling
managers to monitor progress and make adjustments as needed.

In the evaluation phase, data analytics and AI can assess the success of change initiatives,
providing insights into what worked well or didn't. This helps in refining future change
management strategies, ensuring continuous improvement and adaptation to the evolving
digital landscape.

The synergy of technology with change management is essential for businesses seeking to
thrive in the digital age, where adaptability and responsiveness are key to success.

Popular change management tools

Digital and nondigital change management tools can help change management officers
research, analyze, organize and implement changes. In a small company, the tools might consist
of spreadsheets, Gantt charts and flowcharts. Larger organizations typically use software suites
to maintain digital change logs and provide stakeholders with an integrated, holistic view of
change and its effects.

The following examples of change management software applications were gathered from
sources such as Capterra and G2 as well as various software reviews:

360Learning. This tool lets employees create learning content to help others learn about and
adjust to changes.

Asana. While not exclusively a change management tool, Asana helps in managing tasks and
projects, facilitating the tracking and coordination of change initiatives.

Freshservice by Freshworks. An online ITIL change management product that offers

workflow customization, automation and gamification features to manage IT service
 changes.

SurveyMonkey. This tool lets change managers create surveys to track and gauge how
changes are working or not working as they're rolled out.

Tableau. This business intelligence application lets managers build dashboards with charts
and graphs that summarize progress and effectiveness of transitions as they implement
changes.

WalkMe. This digital adoption platform answers employees' questions and provides
information on new software right in the application.

Change management certifications

Change management practitioners can earn certifications that recognize their ability to manage
change projects, manage people and guide an organization through a period of transition or
transformation. Several organizations offer certifications for change management. Examples
include the following:

APMG International. In partnership with the Change Management Institute (CMI), APMG
offers foundation and practitioner levels of its Change Management Certification.

Association of Change Management Professionals. ACMP offers a Certified Change

Management Professional certification for best practices in change management.

Change Leadership Group. The Certified Change Leader certification focuses on the
leadership aspects of change management, teaching leaders how to effectively lead and
manage change in their organizations.

Change Management Institute. CMI offers three levels of its Accredited Change
Professionals certifications.

Cornell University SC Johnson College of Business. Cornell's Change Management

Certificate program authenticates a change agent's ability to carry out a change initiative.
The certification requires four core courses and two leadership electives.

Global Association for Quality Management. The GAQM's Certified Problem and Change
Manager program focuses on problem-solving and change management in IT service
management environments.

Management and Strategy Institute. The Change Management Specialist certification

attests to the recipient's ability to design and manage change programs.

Prosci. The Prosci Change Management Certification Program validates that recipients can
apply holistic change management methodologies and the ADKAR model to a project.

Overcoming resistance to change

In general, most people don't like change, even if it's for the better. Here are some best practices
to mitigate resistance to change:

Clarify the goal of the change being made and identify how it can benefit others.

Listen to objections and find ways to address them.

Take the time to build consensus rather than bulldoze dissenters.

Consider feedback as a guide rather than an obstacle.

Celebrate success at the end to encourage further change.

Be willing to backtrack when the change doesn't meet desired goals.

CIOs and other IT leaders are often the ones driving significant organizational change. Learn about
four ways to ease these transitions.
This was last updated in April 2024

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